New Car Lease vs Buy

New Car Leasing vs Buying

Why Should You Lease a New Car?

If you prefer to drive newer, safer, more reliable cars, but prefer not commit to a big down payment every few years, and also do not travel an excessive amount of miles yearly, then a new car lease could be better for you. Leasing is designed for those who would prefer to avert the hassle of buying and selling every time they want to upgrade to a new car, truck, or SUV.

Why Should You Buy a New Car?

Conversely, if you prefer long term relationships with a larger sense of ownership and commitment, then buying may be what’s right for you. Car-buying is typically best for those who don’t mind driving the same car for more than five years or even until it’s no longer suitable for the road.

Buy vs Lease: Which One Is Right for You?

Being aware of the pros, cons, and overall benefits of buying vs leasing a vehicle is imperative. Be sure to contemplate monthly payments, vehicle ownership, repair costs, and potential savings when considering the best new car, truck or SUV financing type for you.

Buying: Ownership vs Leasing

When considering vehicle financing, new car ownership surely comes with many advantages, most associated with complete ownership of the car or truck. You may not realize, however, there are also some nice benefits of leasing, as well. It’s imperative to consider all financial aspects including monthly payments, down payment, term length, buyout payments, interest rate, depreciation, and maintenance & repair costs, before making a decision. A close diagnosis of your current financial situation, future needs, and your preference for commitment, will likely ensure that you make the optimal choice between leasing and buying a new car.

pros and cons of leasing vs financing a new car

Monthly Payments

Car, truck, or SUV lease payments are often times less expensive when compared to car financing and loan payments as the normal lease contract is basically renting with the option to buy out at the end of your lease term. Just consider when leasing that you will need a higher credit score, and will be required to carry collision and comprehensive insurance, although the same can be said for the better rate auto loans. Although it might likely increase monthly payments, it is also wise to get a model with the features you need or want, as personal satisfaction is often priceless.

is it better to finance or lease a car

Maintenance & Repair

Auto leasing often includes regular vehicle maintenance & repair. It is important to keep this in mind when projecting monthly costs of leasing vs ownership. Regardless of which make and model you buy, mechanic bills are an unpredictable cost that can rapidly add up. And for those of us who aren’t certified auto mechanics with a hydraulic jack and full toolset in the garage, leasing could be the best option for peace of mind.

lease vs finance car analysis

Investment vs Savings

In general, a new car lease saves money in the short term with lower monthly payments, while buying earns you a long term investment, meaning full ownership of the value of the car at the time it is traded, sold, or paid-off. For best savings on a lease, avoid lease return fees for going over mileage, terminating the vehicle lease early, or putting on excessive wear and tear. For your best investment on a financed/purchased vehicle, you can pay it off in a shorter term and also avoid excessive wear and mileage.

LeaseBuy
OwnershipNo OwnershipPride of Ownership
Down PaymentSmaller Down PaymentLarger Down Payment
Monthly PaymentSmaller Monthly PaymentsLarger Monthly Payments
Maintenance & Repair CostsTypically IncludedNot Included
Savings/InvestmentShort Term SavingsLong Term Investment
Finance TermApprox. 2-4 YearsApprox. 3-6 Years
APR %Credit-BasedCredit-Based
New VehiclesAvailableAvailable
Pre-Owned VehiclesNot AvailableAvailable
Vehicle CustomizationNot AvailableAvailable
Poor Credit FinancingNot AvailableAvailable

Honda Lease and Finance Offers In Tulsa OK

South Pointe Honda knows that choosing the right Honda car and financing option is never easy. Our team of experienced Honda lease and finance specialist are on hand to help you make the right choice. Visit us online, by phone, or in-person at our dealership location in Tulsa, OK. We look forward to serving you.


Great experience

After shopping other dealers and other makes of cars, we returned to South Pointe Honda (having purchased multiple cars here before). This was pro but he easiest and most pleasant car purchase I have ever made.

Customer: MJH
Date: 2020-10-23

Great place to go look for a vehicle

Very great place to get a vehicle, salesman and staff were very polite and easy to work with. They weren't pushy and were ready to help in any way they could

Customer: Vicky Tarwater
Date: 2020-10-19

I went in just to get an estimate on my trade in and look at one vehicle, but I ended up buying my new HR-V that day. I worked with Joe - great guy, down to earth, and not gimmicky at all. They helped me get a great interest rate, offered me exactly what I hoped for my trade, and listened to my needs for budget without trying to talk me into more car or features than I wanted. Super impressed!

Customer: Melody Cochran
Date: 2020-10-09

Made an appointment for an oil change + tire rotation and was back in my car within an hour! Very easy process and they wash your car and fill up washer fluid. Will be back here again for my next oil change; ask for Trey! He welcomed me as I walked in, explained everything they did in detail and even applied an online coupon for me. Overall 10/10 service!

Customer: Alexa Fisher
Date: 2020-10-09

Ken Phillips evaluation of Troy Kuykendalk

Troy Kuykendall is the most professional salesman. I always know I will be treated properly and get the best deal available from Troy. Troy is knowledgeable and honest.

Customer: Ken Phillips
Date: 2020-10-08